Purchasing power of Europeans increased to €17,688 per capita in 2023

GfK: Purchasing power of Europeans in 2023.

The biggest winner of the year was Ireland, while Norway, Germany, and the UK fell a slightly

In 2023, the average per capita purchasing power in Europe (not only the EU) was €17,688. However, there was a clear divide among the 42 countries: Liechtenstein, Switzerland, and Luxembourg, for example, had quite a higher net income than the rest of Europe, while the purchasing power was the lowest in Belarus, Kosovo, and Ukraine. The biggest winner of the year was Ireland, which moved up four places in the overall European comparison. These are some of the results of the newly released study “GfK Purchasing Power Europe 2023.”

In total, Europeans had around €12.1 trillion available to spend in 2023 on food, housing, services, energy costs, private pensions, insurance, vacations, mobility, and consumer purchases. This corresponded to an average per capita purchasing power of €17,688 per year, which represented a nominal growth of 5.8 percent compared to the revised values of the previous year.

As in previous years, Liechtenstein topped the ranking by some significant distance. Its people had a per capita purchasing power of €68,843, which was almost 3.9 times higher than the European average. Switzerland and Luxembourg followed in second and third place. While the per capita purchasing power of the Swiss was €49,592 – almost 2.8 times the European average – Luxembourgers had a disposable net income of €40,931 per capita. This was more than 2.3 times the European average.

All other countries in the top ten also had a very high per capita purchasing power – at least 47 percent more than the European average. The biggest winner was Ireland: After it state barely made it into the top 10 last year, it was able to move up four places this year and reached now sixth place. With €26,882 per capita, the Irish were exactly 52 percent above the European average.

There were also some other changes within the purchasing power top 10. Iceland and Denmark moved up one place each to fourth and fifth place, respectively, while Austria improved by two places to seventh place. Norway, on the other hand, fell by four places, Germany by one, and the United Kingdom by three. This puts the three countries at the bottom of the purchasing power top 10.

Source: GfK

(08.03.2024, USA: 03.08.2024)